Tuesday, December 18, 2018

Prevent Delinquent Contributions

Have you provided us with your company’s current payroll calendar? Please take a few moments every quarter to make sure it's up to date. If we don’t have an accurate calendar, you may run the risk of creating plan compliance concerns and possibly facing Department of Labor (DOL) monetary penalties.

The reason is simple: we use your payroll calendar to anticipate when we should receive your plan's employee contributions. You should make these payments shortly after each payroll in order to put your employees’ assets to work. If we don’t receive employee deferrals within a reasonable time after each payroll date, the DOL could consider your plan funding delinquent under the regulations.

If you’d like to update your payroll calendar, contact Client Service for assistance. If you’re concerned about past delinquent contributions, consider looking at the DOL’s Voluntary Fiduciary Correction Program. Information on this program can be found in this FAQ.